COSTA MESA, Calif.--(BUSINESS WIRE)--Oct. 20, 1998--Emulex Corp.
(NASDAQ:EMLX), a leader in gigabit fibre channel, printer server and
network access products, Tuesday announced results for its first
fiscal quarter ended Sept. 27, 1998.
Revenues totaled $14.1 million, compared with $15.0 million
reported for the same quarter a year ago. Net income for the first
quarter of fiscal 1999 amounted to $422,000, or 7 cents per share on a
diluted basis, compared with net income of $609,000, or 10 cents per
share on a diluted basis, for the same quarter a year ago.
"First quarter results reflected both our streamlined product
strategy and organization which we initiated last fiscal year," stated
Paul F. Folino, president and chief executive officer. During the
third quarter of fiscal 1998, Emulex had announced strategies to
outsource manufacturing of its products and consolidate its network
access product sector.
"While the measures implemented last fiscal year yielded reduced
operating expenses in the first quarter, gross profit margins are just
beginning to reflect the cost savings from Emulex's new contract
manufacturing strategy," noted Folino.
Gross margin in the first quarter of fiscal 1999 improved to 41
percent compared with 40 percent in the fourth quarter of fiscal 1998,
while operating expenses, declined to $5.3 million, or 37 percent of
revenue, from $5.8 million, excluding unusual items, or 42 percent of
revenue, over the same period.
"Combined shipments of fibre channel host bus adapters and hubs
rose to a record level in the first quarter, as key OEM customers
deployed fibre channel solutions in increasing volumes to end-user
customers," stated Folino.
"At 39 percent of our total sales, our flagship LightPulse(TM)
fibre channel product line has expanded to become the largest product
sector at Emulex. With fibre channel OEM relationships in place
covering 60 percent of the top 20 server manufacturers in the world,
and our new manufacturing resources fully deployed, Emulex is now well
positioned to address the demands of this emerging industry."
Emulex is a leading designer of high-performance network
connectivity products including fibre channel, printer server and
network access products. The company's hardware and software-based
networking solutions improve communication in computer networks and
enhance data flow between computers and peripherals. Fibre channel is
a high-performance ANSI standard interface that is supported by the
120+ worldwide member Fibre Channel Association that includes Sun,
Hewlett-Packard and Seagate.
As a leading developer and supplier of fibre channel technology,
Emulex's fibre channel devices support all implementations of the
fibre channel standard, including arbitrated loop, switched fabric and
point-to-point topologies. The company markets to OEMs and end users
through its own worldwide selling organization, as well as two-tier
distribution partners. Corporate headquarters are located in Costa
Mesa.
News releases and other information about Emulex are available
via Emulex's World Wide Web address at emulex.com. |
